Want to get rid of 2nd house

senora30 · Joined: 09 Jan 2008 Posts: 2 1.98 Dollars($)

I am wondering if anyone has a suggestion for me. I live in Michigan where the housing market is horrible. My husband and I made the mistake of buying a second house before the first one sold. We have now been renting for 4 years. For the past year, I have had a family renting from me who wants to ultimately buy the house. However, they are working on their credit and cannot get a mortgage yet. (they were told about 2 years). I am paying $700/mo. above what they are paying to keep the house and it's getting tough to continue. Is there anything we can do to get them in the house? (land contract? quick claim?) Thanks for any suggestions.

Kim

ezmortgageloanz · Posted: Wed Jan 09, 2008 6:28 pm Post subject:

Without understanding the nature of your tenant's credit, it's difficult to determine if they have explored all of their options---have the explored a FHA loan?

FHA loans by nature are not credit score driven and rather forgiving with respect to collections and the like.

Regards,

Scott Miller

larry · Joined: 27 Jun 2007 Posts: 3328 473.40 Dollars($)

Hi Kim,

Welcome to the forum.

I think you should not quitclaim the house to them because if you quitclaim you will not have any rights on that property. Only if they take you out of the mortgage and pay you, you can do it. You can check this article to understand better regarding quitclaim deed - http://www.mortgagefit.com/quitclaim-deed.html

I think seller financing is a good option for you.

Hope that will help.

Best of luck,
Larry

senora30 · Joined: 09 Jan 2008 Posts: 2 1.98 Dollars($)

Larry, what exactly does seller financing mean? Can you give me some explanation? Thanks for your help!

larry · Joined: 27 Jun 2007 Posts: 3328 473.40 Dollars($)

Hi Kim,

Welcome back.

In seller financing you/the seller will provide the buyer partial or full financing. But for that the buyer has to pre-qualify for the mortgage. And after getting the mortgage if the buyer fails to pay their payments as agreed to, you can foreclose the loan.

Consult with a real estate agent regarding this and see if the buyer can pre-qualify for the mortgage.

Feel free to ask if you have any further questions.

Best of luck,
Larry

lisascherzer · Joined: 04 Jan 2008 Posts: 749 0.10 Dollars($)

Larry, it sounds like they have a mortgage on the property already so it would not make sense to do seller financing unless you are talking about a portion of it.

Senora30,
Is there equity in the property? How much is the home worth and how much do you owe? I can offer suggestions once I know these two things.

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